Gold prices edged lower on Tuesday as the dollar strengthened following a positive US-North Korea summit, with markets now waiting for a likely interest rate hike by the US Federal Reserve. Spot gold was down 0.1 percent at $1,297.96 per ounce at 0719 GMT and US gold futures for August delivery were 0.1-percent lower at $1,301.90 per ounce.
"The dollar has been a big driver for some time now and investors are certainly taking more from that than from easing geopolitical risks in recent runs ... I suspect that will be the key driver for the short term," said ANZ analyst Daniel Hynes. The dollar hit a three-week high against the yen on Tuesday and Asian shares gained as US President Donald Trump and North Korean leader Kim Jong Un signed a "comprehensive" deal at a historic summit aimed at the denuclearisation of the Korean peninsula.
Trump said the closely watched summit with Kim in Singapore was "really very positive" and that he expected the denuclearisation process to start "very, very quickly".
"The market is starting to price in slightly less geo-political risks," Hynes said.
Gold is expected to be volatile this week amid the US-North Korea summit and central bank meetings Wednesday through Friday, said MKS SA senior precious metals dealer Alex Thorndike.
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